unusal volume

[myt23]

Does anyone think it is useful if i can monitor the unusual volume change of each biotech stock which possess phase II drugs? Will unusual volume imply something behind? When I look is HGSI, before its share price shoot up, before that there's a few unusual days of volume and I wonder if these are indicating the possibility of a great result coming forward.

[arif940]

you made a good point and I guess you are right........Next time I will look for this thing........

[Richie Rich]

Could pay off HUGE! I hope you're onto something.
I'll be watching for your posts.
Thanks!

[DogDayTrader]

Does anyone think it is useful if i can monitor the unusual volume change of each biotech stock which possess phase II drugs? Will unusual volume imply something behind? When I look is HGSI, before its share price shoot up, before that there's a few unusual days of volume and I wonder if these are indicating the possibility of a great result coming forward.

As I always say, the more information you have the better decision you can make. Usually when a stock is in the accumulation stage and the buying volume stats to make an unusual rise, it indicates that the bulls are gaining steam beating down the bears; a condition that will most likely lead to a breakout above the current resistance levels. However, it should be noted that I like to see this happen over the closes of a few days to indicate that the uptrend has validity. It is not as important to enter the stock at the absolute basement bottom price, but to make sound decisions based on facts and then execute the trade effectively.

[medtac0244]

Is there a golden rule for watching the volume changes and price fluctuation before considering buying?

[DogDayTrader]

Is there a golden rule for watching the volume changes and price fluctuation before considering buying?

The only "golden rule" that I know of and follow concerns breakouts. When a stock breaks out of a trading range (stage 1) and enters stage 2 (markup stage) the breakout must be accompanied by a large spike in volume. I like to see the volume at least double of the average volume from what is was when the stock was in stage 1 (accumulation stage).